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In this area in West Java various big global car-makers invested in industrial estates as well as car and component manufacturing plants. Therefore, it has become the production base of Indonesia’s automotive sector and can be labelled the “Detroit of Indonesia”. Attracted by low per capita-car ownership, low labor costs and a rapidly expanding middle class, various global car-makers decided to invest heavily to expand production capacity in Indonesia and may make it their future production hub. Others, such as General Motors have come back to Indonesia to tap this lucrative market. However, Japanese car manufacturers remain the dominant players in Indonesia’s car manufacturing industry, particularly the Toyota brand. It is a very difficult challenge for western brands to compete with their Japanese counterparts in Indonesia, known as the backyard of Japanese car manufacturers.

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